Although some have criticized the process, priorities, and policies used in the formulation of this major tax system overhaul, we in the tax and accounting industry anticipated action. After several iterations, we finally got our wish for something—anything—in concrete so that we could get tax plans in place before year end and have answers to the many questions that our clients are asking about what tax reform does to their 2018 tax bill. On December
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Archives for News
Tax Reform Highlights – Individual Provisions
Although some have criticized the process, priorities, and policies used in the formulation of this major tax system overhaul, we in the tax and accounting industry anticipated action. After several iterations, we finally got our wish for something—anything—in concrete so that we could get tax plans in place before year end and have answers to the many questions that our clients are asking about what tax reform does to their 2018 tax bill. On December
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2015 Strategic Tax Planning for Businesses
YEAR-END BUSINESS PLANNING As with prior years, business tax planning is unsure due to the expiration of many popular but temporary tax breaks that have been of an “extenders” package of legislation. Another factor leading to uncertainty is the far-reaching Affordable Care Act. Additional changes to the tax law in 2015 made by new regulations and other IRS guidance also need to be weighed when evaluating year-end strategies. Code Sec. 179 Expensing Code Sec. 179
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2015 Strategic Tax Planning for Individuals
YEAR-END INDIVIDUAL PLANNING As in years past, there may be value in the customary year-end methods of shifting income. Taking stock of income and expenses to determine whether measures to defer or accelerate one or the other, before the close of the current tax year, should be considered as applicable at year-end 2015 as it has been in the past. As markets continue to adjust and fluctuate, it makes sense to evaluate current gains and
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Research and Development Credits Updates
On 12/19/2014, President Obama signed the H. R. 5771 Bill, known as the Tax Increase Prevention Act. This means that a host of tax credits are being extended to another tax year. Among these is the Research and Development credit. Many small and middle sized businesses do not claim the credit because of the complications in calculating it: The research credit equals the sum of: (1) 20% of the excess (if any) of the qualified
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Latest Updates on the Tax Increase Prevention Act of 2014
On December 16, 2014, Congress passed what is known as an extenders package including more than 50 of the tax credits that expired at the end of 2013. President Obama has signed the Act on December 19, 2014 and it is effective for the 2014 tax year only. Some of the most prominent tax credits are: state and local sales tax deduction, higher education tuition deduction, and the exclusion for discharge of mortgage debt, business and
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Obamacare New Taxes 1/1/14
Obamacare Taxes 3% Tax on Medical Device Manufacturers 2014 10% Tax on Indoor Tanning Services 2014 Blue Cross/Blue Shield Tax Hike Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare Tax on Brand Name Drugs Tax on Health Insurers $500,000 Annual Executive Compensation Limit for Health Insurance Executives Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D Employer Mandate on business with over
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Congress extends Medicaid and education funding at expense of multinational corporations
Just read an excellent update on the new bill that passed on 8/10/2010 in the House, still subject to Senate vote. Quick summary: Medicaid / Education funding for states passed Continual erosion of ability to get foreign tax credits for multinationals or even taxpayers with multiple foreign corps. Foreign tax credits prevent the double taxation of US and foreign taxes. For example if your US corp owns a UK corp, that US corp may have
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IRS New Changes 2010
After a very interesting discussion with the IRS liason recently here in Pasadena. There are some interesting changes in store for tax professionals and the unsuspecting public: 1) Tax professionals and their unlicensed staff must either re-register (get a PTIN) or register with the IRS. Registration entails getting education (CE). IRS wants to license all tax professionals. No word yet on foreign tax professionals. Wonder how Ernst & Young will cope since many of its
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